Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bournville. Inevitably, the period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Bournville have the right to extend the lease for a further 90 years in accordance with statute. You should give due deliberation before delaying your Bournville lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
Leasehold residencies in Bournville with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Bournville,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bournville valuers.
Following lengthy correspondence with the freeholder of her first floor flat in Bournville, Aimee initiated the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction was concluded in March 2005. The freeholder’s fees were kept to an absolute minimum.
Last month we were approach by Mrs Morgan Wood , who acquired a one bedroom flat in Bournville in January 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical properties in Bournville with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 billed yearly. The lease finished in 2091. Given that there were 66 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last Winter we were e-mailed by Mrs Poppy Mason , who completed a one bedroom apartment in Bournville in March 1999. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative properties in Bournville with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed yearly. The lease ended on 21 August 2102. Considering the 77 years unexpired we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.